Assume the same simple trust as above, except there are expenses for investment advisory fees and
custodial fees as well.
In addition, sales-related compensation such as commissions, 12(b-1) fees and revenue sharing must be disclosed, but reasonable and customary
custodial fees not tied to the value of a client's transactions and fees for professional services under a Turnkey Asset Management Platform do not need to be released.
On top of the management fees there are
custodial fees which are quite high; storage, maintenance, insurance etc.
These factors were mostly offset by higher technology initiative spend and lower
custodial fees.
Treasury Regulations section 1.212 provides for the deduction of investment-related expenses (e.g., investment supervisory services) as itemized deductions on Form 1040 Schedule A, Itemized Deductions, line 23, attributable to taxable investment income (e.g., dividends, interest, capital gains); therefore, these fees for services of investment counsel, as well as
custodial fees, represent deductions from adjusted gross income (AGI).
Investors of pension plans managed by insurance companies are significantly more sensitive about the
custodial fees paid to the custodial company than investors of pension plans managed by specialized management companies.
"If you take five per cent of market cap and
custodial fees thereon of 10-12 basis points, that's a lot at stake," said the source.
You may be able to defer deductions for things like charitable contributions; deductible investment expenses such as investment advisory and
custodial fees; and professional fees like tax planning and preparation, accounting, and legal fees.
This means no shipping, insurance, holding or
custodial fees, making it incredibly cost effective.
They will use it only for football and occasional district events, and pay maintenance and
custodial fees on those occasions.
The $8,000 in her IRA is invested in a blue-chip fund; she should roll over that money into a Fidelity IRA account to eliminate paying
custodial fees. Also, she should pay more than the minimum on her student loans--but not twice as much.
For actively managed international funds commissions,
custodial fees and operating and trading cost differences are even greater than for domestic funds.
